In recent times, profitable cryptocurrency investments are frequently mentioned. Therefore, cryptocurrencies are a hot topic on websites that are always mentioned. If you want to invest in cryptocurrency, you should check out Things to be aware of when buying cryptos.
Today, yieldnodes.top shares my previous experiences to get high profits and to avoid being scammed.
1. Cryptocurrency concept and prominent cryptocurrencies in the market
If you want to know about Things to be aware of when buying cryptos, you must first understand cryptocurrencies
1.1 The concept of electronic money
Cryptocurrency is a form of digital currency that is issued and controlled by different developers. It is a trading instrument used and accepted through a specific cryptocurrency exchange, not through the government.
Electronic money also has other names such as: virtual money, digital money, cryptocurrencies, .. instead of the coins we physically exchange used every day. Cryptocurrencies are only available in electronic form.
1.2 Featured Cryptocurrencies
Announced by Satoshi Nakamoto in 2009. Bitcoin works thanks to Blockchain technology, its transactional scope is global. According to statistics earlier this year, Bitcoin holds 70% of the capital on all virtual currencies globally.
Currently, Bitcoin has the highest value with a capitalization of 41.5% of the total cryptocurrency market capitalization. As a result, many investors view Bitcoin as a store of value similar to gold.
Ethereum was created in 2014 by a programmer from Toronto (Canada) named Vitalik Buterin. Ethereum was created to overcome the disadvantages of Bitcoin, and also to further exploit the technological potential of Blockchain.
Currently, Ethereum is a more traded cryptocurrency than Bitcoin and it ranks second in the cryptocurrency exchange rankings in the market. The network and the value of this coin have also been growing strongly over the years.
Binance Coin is in the 3rd place after Ethereum in the cryptocurrency trading rankings. 2021 is the peak of Binance Coin when it grows extremely strongly. Because it has high profit potential, many people are interested in it. Binance Coin is seen as a formidable competitor to Ethereum.
Litecoin was founded by Charlie Lee, a former Googler in 2011. Litecoin is released on Github source code. Litecoin’s goal is to create a new, easier-to-mine Bitcoin. Currently the value of a Litecoin is 225 USD, of which the market capitalization is over 15 billion USD.
2. Things to be aware of when buying cryptos
Now, to the main topic of today, please refer to Things to be aware of when buying cryptos below.
2.1 Transactional research
When you are just starting out, you should choose cryptocurrencies with a long-standing reputation with a high level of security as I described in part 1. Avoid choosing coins that you have not thoroughly researched or difficult garbage. control. In addition, you need to choose a reputable e-wallet and the exchange market to ensure it is very necessary.
2.2 Always uphold security
When you conduct cryptocurrency transactions, always remember that transactions at home are safer than transactions in public. It is recommended to change the router’s password because the root password is usually set the same for all routers. same model, leaving your home internet connection vulnerable to attack.
When trading it is best to choose an encrypted trading channel. This gives your transaction a layer of security. In addition, you should set a password on your computer and Smartphone.
2.3 Diversification of investments
Your crypto investment strategy must be diversified. Avoid investing all your capital in a certain coin. This increases your risk when investing. You should choose different cryptocurrencies to invest in them to support each other for the purpose of profiting from many sources or if you are at risk, only one or two sources.
2.4 Prepare for instability
Cryptocurrency is an unstable market, it can fluctuate up or down from day to day or from time to time. You need to be mentally prepared to accept bad changes. Virtual currency is exploding and gradually gaining popularity around the world but it is still in its infancy and has not been recognized by the laws of many countries.
Not only investing in virtual money, but if you want to invest in something, you must accept all the challenges it creates. So it is necessary to prepare psychologically in advance, not just investing in virtual money to be able to generate easy profits
2.5 Update news regularly
Currently, information technology in the world is very developed, so updating market information is extremely simple. With that said, the price of a cryptocurrency will fluctuate constantly or be heavily influenced by high-profile figures.
So you should keep an eye on the key person because that character can affect the price of buying and selling cryptocurrencies. For example: Elon Musk can make fluctuations in the price of cryptocurrencies. If you regularly follow crypto news, this name is not unfamiliar. Just saying I’m holding a cryptocurrency is immediately the price of Bitcoin is inflated.
2.6 Don’t trade blindly
Things to be aware of when buying cryptos is not trading blindly. When you first join cryptocurrencies, you need to spend time learning and mastering skills, how to invest,…But once you understand the nature and master the skills, you need to improve yourself in order to continue to find your strengths.
Simply put, not every experienced investor tells you to do whatever you want. That will not be certain of many possible risks that investors are not sure about. Instead, do technical analysis and monitor the market to draw up the right strategy. In fact, the same strategy may have worked for one investor, but not for another.
You should also keep in mind that the advice or analysis of trading by cryptocurrency investment experts will often bring in profits several times over. If you blindly believe and follow, the transaction will not be effective in the long run.
2.7 Scams keep increasing
There are two types of crypto scams that you should be aware of. One is the Ponzi scheme. In this model, it scams investors into and pays them profits first with money from later investors.
The second is a scam to buy a coin and spread rumors or give information in a vague way to mislead to push the price up. Then dumping as soon as other people start buying.
In addition, Mr. Hong Qi Yu – CEO of cryptocurrency exchange Tokenize Exchange said that scammers also use third-party accounts to cover their tracks. By breaking into accounts, they can defraud investors by forcing them to invest in unsuspecting personal accounts.
2.8 FOMO problems
FOMO (Fear Of Missing Out) is a very familiar phrase and is always mentioned in the investment world. This is a phrase about the fear of missing out on a ripe opportunity to invest in the cryptocurrency trading world.
The syndrome is very common in crypto trading. For example, you are holding a coin that in the market the value of that coin is fluctuating so you are afraid you will miss a good opportunity to make a good profit and you think you will sell it right away.
Besides, this syndrome is also seen very clearly for newbies when they first embark on this cryptocurrency market. You worry about the volatility of the coin, every 10 minutes you will check the chart of the coin increasing or decreasing. Even when you sleep, thinking about the fluctuations of that coin will make you unable to sleep well.
However, do not worry because this syndrome only appears in the early days when you are new to trading. The way to overcome it is to breathe deeply, relax and gradually this feeling will disappear.
2.9 “Revenge trading”
Revenge trading is understood as when you have a loss in a previous trade, you want to get it back by trading one more time. However, you need to be careful not to make decisions when you are not calm.
When you lose money and want to remove the gauze immediately, you should restrain yourself first. To avoid being “too angry” or being caught by scammers who are waiting for the right time to do their bad deeds.
3. Should I Invest in Cryptocurrencies?
The name is Things to be aware of when buying cryptos. When investing in cryptocurrencies we should remember that investing in any channel can carry risks. Cryptocurrency investing is no exception.
It is necessary to understand the legality well before you want to invest. Besides, cryptocurrency prices also fluctuate over time. You should not put all your investment in a digital account. However, if you know how to invest, you will receive huge profits.
Above are Things to be aware of when buying cryptos. Therefore, through the above article, we do not really recommend or not invest in cryptocurrencies. We only recommend that you be aware of the risks that cryptocurrencies present to you. Besides, you must regularly update, learn and understand the market to make your investment smooth. Good luck!